Business Standard

Explained: Does the new tax regime adversely affect household savings?

New tax regime does not have tax deductions as is given under various provisions such as 80C or 80D of the Income Tax Act

tax
Premium

Indivjal Dhasmana New Delhi
Critics, including former Finance Minister P Chidambaram, have criticised the Budget's focus on the new tax regime saying it does not motivate people to save. This focus, they say, is not good for developing economies that rely on both corporate as well as household savings to spur growth.

New tax regime does not have tax deductions as is given under various provisions such as 80C or 80D of the Income Tax Act.

Finance Minister Nirmala Sitharaman tried to sweeten the new tax regime by increasing the rebate limit to Rs 7 lakh from the earlier Rs 5 lakh. This meant

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 21 2023 | 9:00 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com